Small cap round up: featuring Augean, Cohort, Helical and others

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Small cap round up: featuring Augean, Cohort, Helical and others
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In this weekly summary, Mark Watson-Mitchell updates his readers on previous company profiles and other news of interest from the exciting world of small cap stocks…

Augean (LON:AUG) – wasting no time to rise

Up to 232p on Thursday, extending their recent run-upwards from 173p just over two weeks ago. Still no visible reason for the rise, apart from investor appreciation of the value of the hazardous waste company’s shares.

They close the week at around the 226p level, but still up 31p this week alone.

Profile 31.10.19 @ 158.5p with end 2020 Target Price set at 200p.

Cohort (LON:CHRT) – much better prospects

Last week’s interim results from this defence and domestic security systems group have pleased the market.

They reported a 52% advance in first-half revenue to £60.2m, while the adjusted operating profit was quadrupled to £4m.

Importantly, the orders are coming in faster and the total order book at the end of October was a healthy £206m.

The shares have risen 66p this week to close at around the 676p level but look very capable of climbing a lot higher.

Profile 06.08.19 @ 446p with end 2020 Target Price set at 607p.

Billington Holdings (LON:BILN) – firm demand

From just 313p ten days ago the shares of this structural steel group have performed well this week. Touching 364p at one stage last Monday, they end the week at around the 350p level.

Apparently, those that know suggest that the Johnson win will be very good for Billington’s busier order book.

Profile 02.04.19 @ 266p with end 2020 Target Price set at 314.5p.

Hollywood Bowl (LON:BOWL) – striking and attractive

The recent good profits and dividend news has created some following for the bowling alleys company.

Peel Hunt rate the shares as an ‘add’ looking for 285p, while Liberum Capital and Shore Capital both rate the shares as a ‘buy’.

Mid-week the shares touched 292p, before easing back on profit-taking, to close the week at around the 278p level.

Profile 14.11.19 @ 240p with end 2020 Target Price set at 300p.

Studio Retail (LON:STU) – a shrewd disposal

The interim results and trading update suggest that this multi-channel value retailer is doing the right thing in selling off its educational supplies business for £50m.

Current-year revenue and profit estimates are being upgraded to £535m and £30.5m respectively, worth 29.5p in earnings per share.

They close the week at 223p, some way below my estimated value – offering some big upside now.

Profile 04.07.19 @ 253p with end 2020 Target Price of 375p.

Capital Drilling (LON:CAPD) – why the price fall?

I am somewhat mystified at the fall back in the share price of this drilling rigs to mining services company. Over the last three weeks they have fallen back significantly from 72p to a 51p low on Thursday. They close the week at around the 54.5p level.

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I remain very positive about this company and its prospects, but might there be more easing of the price before the buyers return for the recovery?

Profile 23.07.19 @ 48p with end 2020 Target Price set at 76p.

Profile 22.10.19 @ 61p with end 2020 Target Price set at 100p.

Rank Group (LON:RNK) – striding ahead

From 255p a week ago, the shares of this multi-channel gaming services group are looking perky. They close the week at 274p, looking stronger in front of their interims being declared in a month’s time.

Profile 13.06.19 @ 157p with end 2020 Target Price set at 200/220p.

Wincanton (LON:WIN) – better without towing Eddie Stobart perhaps

The market seems to have a very positive opinion about this major logistics group not proceeding with its intention to bid for the failing Eddie Stobart group.

I am sure that the fees and costs will have been very high for the due diligence that the company undertook as it scoured the ESL books.

However, perhaps it was the best thing to do in driving away from making a bid – the remedial costs of sorting ESL out might well have proved far too expensive for the advantage that could have been gained inside the competitive logistics sector.

The shares were just 250p less than three weeks ago, they close this week at around the 293p level. Hold tight. HSBC have recently upped their sights to 320p and rate the shares as a ‘buy’.

Profile 07.05.19 @ 247p with end 2020 Target Price set at 350p.

Codemasters (LON:CDM) – leading the game

Analysts that know the video gaming group very well are impressed with the company’s latest deal with its Fast & Furious Crossroads game. It will be launched in Spring 2020 and could well be the first of several deals with the Universal Studios entertainments group.

Brokers Liberum are looking for the company’s shares to re-rate – they say they are now a ‘buy’ looking for 370p. Shore Capital and Peel Hunt have also both come out with ‘buy’ ratings.

The shares close the week at around 285p.

Profile 25.06.19 @ 225p with an early TP of 278p and then an end 2020 Target Price set at 350p.

Severfield (LON:SFR) – getting firmer

Brokers Jefferies International are bullish about the international structural steel group, looking for the shares to go to 103p.

Just over a week ago they were trading at 72.5p, and they close the week at around 86p, so still plenty to go for on the upside. They are just 2p short of my target and I am convinced that they will break through that and hit the broker’s value estimate.

Profile 12.09.19 @ 62p with end 2020 Target Price set at 88p.

Helical (LON:HLCL) – private equity will have to pay higher

In the middle of the year there was a strong buzz that a couple of private equity houses were very interested in bidding for the shares of my all-time favourite property group.

They were then trading at around the 389p level, since when they have dipped down to 349p by the end of August. However, the subsequent climb since mid-September has been gently progressive.

The recent interims were well received, and the shares picked up from 392p to 419p by the middle of last week.  But this last week has seen them getting a bit of a fizz on – touching 472p by Tuesday. They close the week at 461.5p and still looking strong.

Brokers Peel Hunt have called the shares as a ‘buy’, upgrading their price target to 480p against 425p previously. Never underestimate this company.

Profile 11.06.19 @ 389p with early 489p TP and end 2020 Target Price set at 500p.

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